Mumbai: MMRDA switching to Adani Electricity for metro & monorail

03 Apr 2024 CW Team

MMRDA authorities have confirmed that directives have been issued to initiate the process of transitioning to an alternative power supplier. It is speculated that MMRDA will opt for Adani Electricity, which currently imposes a tariff of Rs 6.15 per unit. The transition process for both modes of public transit is currently underway, although Tata Power officials assert they have not received any notification regarding the switch of power suppliers by MMRDA.

Tata Power officials emphasised that the disparity in tariffs between Tata Power and Adani Electricity is minimal, attributing it to the latter's inclusion of a Fuel Adjustment Charge (FAC) in its base tariffs. They recalled that last year, Tata Power's tariff was substantially lower, leading to a refund of Rs 3.5 billion to consumers over the subsequent three months, as per regulatory guidelines. Additionally, they noted minimal consumer migration between utilities over the past year and highlighted instances where MMRDA entities that had previously switched from Tata Power eventually returned for what they deemed better and more affordable service.

Regarding Metro lines 2A and 7, which traverse a 20-kilometer corridor spanning Andheri West-Dahisar-Gundavali and consume 12-15 megawatts of electricity daily, and the 20-kilometer monorail spanning Chembur-Wadala-Jacob Circle, consuming 2-3 megawatts daily, the decision arrives after years since MMRDA had initially entered into an agreement with Adani Electricity to supply power for these lines, totaling over 120 million units of power.

The Mumbai Metropolitan Region Development Authority (MMRDA) has announced its decision to transition away from Tata Power for the Monorail and Metro corridors 2A and 7, aiming for a more economical power supply. This decision, according to MMRDA officials, stems from Tata Power's substantial tariff increase effective from April 1, 2024. Under the previous tariff schedule for 2023?24, the rate for the monorail metro corridors stood at Rs 4.92 per unit, whereas the newly proposed tariff schedule for 2024?25 suggests a rate of Rs 7.37 per unit, reflecting a significant hike of Rs 2.45 per unit. Moreover, Tata Power has elevated the fixed charges from Rs 375 to Rs 400. MMRDA authorities have confirmed that directives have been issued to initiate the process of transitioning to an alternative power supplier. It is speculated that MMRDA will opt for Adani Electricity, which currently imposes a tariff of Rs 6.15 per unit. The transition process for both modes of public transit is currently underway, although Tata Power officials assert they have not received any notification regarding the switch of power suppliers by MMRDA. Tata Power officials emphasised that the disparity in tariffs between Tata Power and Adani Electricity is minimal, attributing it to the latter's inclusion of a Fuel Adjustment Charge (FAC) in its base tariffs. They recalled that last year, Tata Power's tariff was substantially lower, leading to a refund of Rs 3.5 billion to consumers over the subsequent three months, as per regulatory guidelines. Additionally, they noted minimal consumer migration between utilities over the past year and highlighted instances where MMRDA entities that had previously switched from Tata Power eventually returned for what they deemed better and more affordable service. Regarding Metro lines 2A and 7, which traverse a 20-kilometer corridor spanning Andheri West-Dahisar-Gundavali and consume 12-15 megawatts of electricity daily, and the 20-kilometer monorail spanning Chembur-Wadala-Jacob Circle, consuming 2-3 megawatts daily, the decision arrives after years since MMRDA had initially entered into an agreement with Adani Electricity to supply power for these lines, totaling over 120 million units of power.

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